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How Much Below Asking Price R Sellers Accepting?


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It's in Scotland. Price 'haggling' doesn't usually happen up there does it?

There's a "notice of interest" thing as well. A friend of mine who bought up there back in the 1990s had to put an offer in writing along with anoyne else who was interested and it was Yes or No.

Of course haggling happens in Scotland in relation to buying property. "Fixed Pricing" is a ploy for the uninitiated.

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Well - I've shortlisted 3 properties. 2 of them started off at 400K a year ago, 1 of them started at 380K a year ago. I've offered 300K cash - no takers yet, but I can be a little more patient. After all, I'm the one compounding interest - for what its worth. :P . Impossible to get an idea of actual sold prices as all 3 are unique, non estate & no nearby houses of same or similar design.

And, if I do miss the boat- what the heck. There's only me - I'll just carry on travelling.. :lol:

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Well - I've shortlisted 3 properties. 2 of them started off at 400K a year ago, 1 of them started at 380K a year ago. I've offered 300K cash - no takers yet, but I can be a little more patient. After all, I'm the one compounding interest - for what its worth. :P . Impossible to get an idea of actual sold prices as all 3 are unique, non estate & no nearby houses of same or similar design.

And, if I do miss the boat- what the heck. There's only me - I'll just carry on travelling.. :lol:

I did almost exactly the same thing a few years ago.

Asking price was £360K, I offered £270K and stressed that it was a non negotiable cash offer that would be on the table for one week. They said that £275K was their minimum, I spent the rest of the week hoping that they wouldn't drop the extra £5K as I'd changed my mind but would, of course, have honoured my offer had they taken it up within the week.

A lucky escape. That was the last offer I have made.

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FWIW, i'm looking for a place at the moment. In the area I am looking, decent houses are on the market for a very short space of time before going SSTC (example: three bed bungalow £330k one week before SSTC), and some appear on the market as SSTC. It sucks, but thats the reality. Its very competitive. I don't know where the majority of HPC users reside but it certainly their experiences do not reflect what I am seeing locally (cardiff).

Also as a previously vehement believer in HPC - how can prices be sustainable!!?!? - i've decided to throw in the towel and have offered 5% below asking on a £390k property, to be told in no uncertain terms that the minimum vendor will accept is 2% below asking.

Funny old world isn't it. I've given up on HPC. I've the equivalent of a average in house price cost in my bank accounts and i can't see prices dropping in actual terms ever, maybe in nominal, but then i earn a good salary and frankly am past caring about the whole thing - its just not going to happen. Too many super rich people have too much wealth stored in property for there to be a real adjustment allowed.

I am throwing in the towel on HPC as a logical and reasonable idology which is unfortunately living in lalalala land as it doesn't fit in with the ideology of fact - those who actually control the big stuff in this world have too much vested interest to allow it to fail; you are either in it or you are not.

regards, etc.

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I did almost exactly the same thing a few years ago.

Asking price was £360K, I offered £270K and stressed that it was a non negotiable cash offer that would be on the table for one week. They said that £275K was their minimum, I spent the rest of the week hoping that they wouldn't drop the extra £5K as I'd changed my mind but would, of course, have honoured my offer had they taken it up within the week.

A lucky escape. That was the last offer I have made.

No offence, but I read your post and think - this person is full of BS and living in some fantasy land - just jealousy you understand. Good luck to you, but I am deeply sceptical of your posts.

regards, etc.

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No offence, but I read your post and think - this person is full of BS and living in some fantasy land - just jealousy you understand. Good luck to you, but I am deeply sceptical of your posts.

regards, etc.

To be frank the people buying houses now at 2007 peak, economy destroying prices, are living in fantasy land.

After the biggest banking/economic collapse in history and a country full of desperate sellers, people still think that offering 20-30% below an over inflated asking price is silly...read the sentence back to yourself ands ask who the deluded people are !!!

Look at the rightmove asking price index. Look at the land registry index. What's the difference 20/30%...thats what i'd be offering below asking price and justifying it with the land registry data, local sales data, auction data and the statement that the economy has collapsed and if you dont accept my offer someone else will, it's just a house, not a new kidney.

The people buying now at peak prices must be amonst the most stupid and deluded the world has ever know.

My post has nothing to do with jealousy and I wouldnt buy a house in this country now if there were giving them away free.

My advice to the O.P. learn to haggle. No matter what you offer the E,A, will always come back and say it''s not enough, might as well point out the facts of the economic crisis, start and 50% off and work your way up.

As an indian friend said to me when I was going to his homeland on holiday, they see you coming, they will rip you off, offer 90% less than the asking price, you might get them down to 50%, you are still paying 10 times too much.

Ever wondered why E.A's shops have such big windows ? To display lots of properties, I hear you say...no, it's so they can see you coming.

Edited by TheCountOfNowhere
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I am about to put in an offer for a house in which the seller wants "offers over....". I live north of the border.

What percentage below the asking price should I offer?

Anyone got recent experience of this?

thanks

I think it depends on how much time you have to waste. Why not go to a high street shop and haggle 50% discounts on Tv's at least its a warm comfortable sorrounding and you can get a coffee at starbucks on the way home.

If you were a serious buyer you would know your price, and roll the dice, unfortunately to most agents you come across as a time waster and would most likely get short shrift.

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I think it depends on how much time you have to waste. Why not go to a high street shop and haggle 50% discounts on Tv's at least its a warm comfortable sorrounding and you can get a coffee at starbucks on the way home.

If you were a serious buyer you would know your price, and roll the dice, unfortunately to most agents you come across as a time waster and would most likely get short shrift.

Arrogant post of the week - well done.

Who is to say the OP has any experience in buying a house? Posting on a housing related forum for advice on buying a house shocker!

You seem to hint that the agent is in charge here too. They are merely an annoyance/hurdle; nothing more.

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I suppose the answer depends on how realistic the current vendor valuation is. This relationship between vendor asking price and current local activity is key to the whole thing, deciding everything must have 20\30% off is great when you are searching Rightmove, but it's probably not the smartest business negotiation technique for buying houses. Whilst I guess there is no harm with low ball offers for property vastly over priced within it's market, (I'd say for me) I'd rather not waste my time with time waster sellers.

Remember if you getting a mortgage, the bank valuation of the property is going to have a massive impact so you want to leave yourself some wiggle room (on your side) if you are really set on completing on a particular property - and the best way to do that is to get a healthy reduction on the asking price to start with. You don't get that by being nice!

My own experience right now is that so little has sold since 2008 in the streets I am looking at, it's hard to judge just how realistic the vendor price is. I wouldn't know what the sentiment is like at the higher end of the market (as I'm in FTB \ big deposit territory) - but I'd expect it's a bit easier for a vendor to accept a 10-15% off £140K than £400K.

If it could be established from recent data what it is worth and this bears some relationship to the asking price - then you need to decide what you are willing to pay, you could then start off at 10% below your figure. The point is know what you are willing to pay and factor this in to the offers, knowing fine well you might need to go to your self imposed limit. You can move up through your offers and this will make the seller and ea feel that they are in control, but in reality you are in control as ultimately you have set your exit price which you walk at at without advertising it to the seller.

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I am about to put in an offer for a house in which the seller wants "offers over....". I live north of the border.

What percentage below the asking price should I offer?

Anyone got recent experience of this?

thanks

There are desirable houses, and there are sh1te houses.

If you find that you are the only person interested in a particular property, that there are no other purchasers interested, then I think you ought to reflect on that fact and realise you are looking at something nobody else wants.

The houses to invest in are those that attract a lot of buyers, they are the ones to go for, and you will have to pay over asking to secure, but will have a good investment rather than a white elephant.

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My own feeling is that I wouldn't pay more than 10% off your average asking price - I suspect many sellers expect that at present. Whether they're keen enough to accept it is another matter though. If you want to buy now then you may have to pay more than this. A quick look at righmove shows 2 types of properties - those newly on the market and those offering 5% discounts. Frankly I don't think a discount of 5% is enough to entice purchasers who have already refused to buy your property at the original price. Don't pay more than 90% of the asking price unless the situation is exceptional - you need at least 10% to cover the very likely drop in prices in the coming 2 years. Best thing though is to wait for a few months until sales volumes and IRs start picking up and you get a proper choice of motivated sellers.

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Well if you are buying now you'll have to ignore people like Mr Banner. As much as he would like it to be true, sentiment has not turned. If you offer 30% below, you'll get laughed at. However, 20% off as a taster might be worth starting at. You'll still get laughed at mind. In today's climate regardless of the doom mongers here you'll be lucky to get more than 10% off.

He who laughs last, laughs loudest.

I'm with Bruce Banner on this one.

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He who laughs last, laughs loudest.

I'm with Bruce Banner on this one.

Hulk may be right about the 30% but if you're looking to buy a house at that price now it's simplest not going to happen unless you have a particularly lucky set of circumstances working for you. The markets don't work on what price it will be, only what price can be sold for now. Need to wait a while if you want 30% off.

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After reading these forums for so long it always makes me laugh how people give their opinion like its fact , I need to get one of their crystal balls so I can see into the future too.

Out of interest how do people think house prices will become more affordable in the future?

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Hulk may be right about the 30% but if you're looking to buy a house at that price now it's simplest not going to happen unless you have a particularly lucky set of circumstances working for you. The markets don't work on what price it will be, only what price can be sold for now. Need to wait a while if you want 30% off.

Well, yes, you possibly won't get 30% off asking price at the moment, but it makes no sense to buy at anything more than 30% off today's inflated prices.

Let me explain:

I expect prices to drop 40% over the next few years. For argument's sake, lets take a £400K house and say 40% off over four years. Now, 40% of £400K is £160K, which is £40K per year :(. And, 30% of £400K is £120K which is £30K per year, so the difference is £10K per year, about what I pay in rent... quod erat demonstrandum ;).

Edited by Bruce Banner
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After reading these forums for so long it always makes me laugh how people give their opinion like its fact , I need to get one of their crystal balls so I can see into the future too.

Out of interest how do people think house prices will become more affordable in the future?

Good question.

Or perhaps, how do people think house prices became less affordable in the past?

The answer to that one is, because more / cheap / created money was released onto the market.

So perhaps the answer to your question is....... house prices will be more affordable when money get expensive.

So perhaps the question we need to know is, when will money become more expensive?

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Well, yes, you possibly won't get 30% off asking price at the moment, but it makes no sense to buy at anything more than 30% off today's inflated prices.

Let me explain:

I expect prices to drop 40% over the next few years. For argument's sake, lets take a £400K house and say 40% off over four years. Now, 40% of £400K is £160K, which is £40K per year :(. And, 30% of £400K is £120K which is £30K per year, so the difference is £10K per year, about what I pay in rent... quod erat demonstrandum ;).

You can't do a QED on an expectation ( 'I expect ') only on fundamental truths.

Doesn't mean I disagree tho.

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I think Scotland works on a system of sealed bids submitted to the seller's solicitor, and the "offers over" relates to the seller's reserve price. I would expect offering less than this will just have the bid excluded from the auction, unless there are no other bidders for the property.

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Offer 30% below the asking price and, if accepted, keep you fingers crossed that prices don't drop too much more than 30% over the next few years.

Good reply. Prices should fall by around 30% in the coming years. If the buyer pays more than that, he will lose money and get into negative equity. And if he doesn't have the cash to cover it, he will be stuck = lose his freedom to move.

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I think he was after a sensible answer. I would go in 15% below at least. When checking some properties sold prices I have viewed on RM the last year with "offers over" they sold substantialy lower and these are fairly recent sales. Don't be phased by "offers over". Go in low, with the knowledge they'll up your offer and will leave happy if you accept it because they had the last word. Let them have it.

That was a sensible answer. But to find a mid-way point, the buyer should put an offer 15% below, but in a few months, because we will soon have:

- In March: a scary budget

- End of April: publication of the GDP numbers for Q1 2010: back into recession.

- May: General Election

- Within 50 days: Conservatives "Emergency Budget" - much scarier.

The buyer should put an offer 15% below the asking prices then, as they will be much lower than the current asking price.

Just wait a few more months.

Edited by Tired of waiting
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I think Scotland works on a system of sealed bids submitted to the seller's solicitor, and the "offers over" relates to the seller's reserve price. I would expect offering less than this will just have the bid excluded from the auction, unless there are no other bidders for the property.

Sounds reasonable but in fact if you look at the possible scenarios, your statement is logically meaningless:

Suppose as you say, a bid below reserve is excluded unless there are no bidders above reserve. Picture the possible permutations:

1. There is a higher bidder above reserve = you don't win

2. There is a higher bidder but you are both below reserve = your bid is 'included' but you don't win

3. You (below reserve) are the highest bidder = your bid will be the one to be considered.

(Note that in the Scottish system inviting bids does not oblige the vendor to accept any one of them, even the highest.)

Clearly these are the same outcomes as if you claimed that 'all bids at any level are included'.

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Well, yes, you possibly won't get 30% off asking price at the moment, but it makes no sense to buy at anything more than 30% off today's inflated prices.

Let me explain:

I expect prices to drop 40% over the next few years. For argument's sake, lets take a £400K house and say 40% off over four years. Now, 40% of £400K is £160K, which is £40K per year :(. And, 30% of £400K is £120K which is £30K per year, so the difference is £10K per year, about what I pay in rent... quod erat demonstrandum ;).

There's one slight flaw in the argument though - the above assumes that your made up numbers are correct. I really hope they are but I don't know that our OP should base his financial decisions on them. It's not a criticism of you - the OP asked for our opinions so you're entitled to give them, but houses have not yet dropped 30% and until there are signs that they have, few sellers are going to take a 30% below offer seriously.

Having said that, let's not forget that it's not sellers who determine the price. They price their house at the price they think (hope) they can get, but if no takers they either don't sell or reduce their price. People shouldn't think that just because the price is 300K that that is around the value of the house - we all have heard how different values can be depending on the agent.

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Good reply. Prices should fall by around 30% in the coming years. If the buyer pays more than that, he will lose money and get into negative equity. And if he doesn't have the cash to cover it, he will be stuck = lose his freedom to move.

First off I am a bear.

However

1. there is no way on earth a vendor will take, or should take, the anticipated loss over the next few years all up front even if he agrees.

2. If the OP has equity at the start due to having a substantial deposit then they will not go into NE.

3. They might like the house...and want to stay indefinitely

I reckon exchange at 15% off. A further 15% off is an acceptable downside risk if there is any likelihood of not finding a similar property when the market bottoms.

On the other hand if the house is nothing special and easily sourced in another location then I'd not even bother offering.

It feels like a lot on HPC, e.g. STRs, want everyone buying to make savagely low offers because it suits their agenda.

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